[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2072 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 2072
To reauthorize the Export-Import Bank of the United States, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 1, 2011
Mr. Gary G. Miller of California (for himself, Mr. Bachus, Mr. Frank of
Massachusetts, and Mrs. McCarthy of New York) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To reauthorize the Export-Import Bank of the United States, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Securing American
Jobs Through Exports Act of 2011''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings; statement of purpose.
Sec. 3. Extension of authority.
Sec. 4. Limitations on outstanding loans, guarantees, and insurance.
Sec. 5. Content guidelines for the provision of Bank financing.
Sec. 6. Biennial audits of Bank transactions.
Sec. 7. Use of portion of Bank surplus to update information technology
systems.
Sec. 8. Monitoring of default rates on Bank financing; reports on
default rates.
Sec. 9. Sense of the Congress regarding Bank accountability.
Sec. 10. Sub-Saharan Africa Advisory Committee.
Sec. 11. Extension of authority to provide financing for the export of
nonlethal defense articles or services the
primary end use of which will be for
civilian purposes.
Sec. 12. Elimination of obsolete provisions.
Sec. 13. Effective date.
SEC. 2. FINDINGS; STATEMENT OF PURPOSE.
(a) Findings.--The Congress finds as follows:
(1) Export sales by United States companies are critical to
national economic growth.
(2) Increased demand for United States exports in emerging
markets will help small and large companies maintain and create
United States jobs.
(3) The Export-Import Bank contributes to a stronger
national economy by financing the export of United States goods
and services in markets where private capital is limited or
unavailable.
(4) The Export-Import Bank of the United States does not
compete with private sector lenders.
(5) The Export-Import Bank of the United States helps
finance United States exports to 183 countries.
(6) A large percentage of global growth will be centered in
markets served by the Export-Import Bank of the United States,
and the Bank will be critical to helping United States
companies compete for these opportunities.
(7) Through its support for exports, in fiscal year 2010
the Export-Import Bank of the United States supported 227,000
American jobs at over 3,300 companies.
(8) The Export-Import Bank of the United States helps to
level the playing field for United States exporters by matching
the financing that other governments provide to their
exporters.
(9) All the leading exporting nations have official export
credit agencies that are used actively to support their
exporters.
(10) Through its insurance, loan, and loan guarantee
products, the Export-Import Bank of the United States supports
the promotion and maintenance of high levels of employment and
real income and increased development of the productive
resources of the United States.
(11) The Export-Import Bank of the United States requires
reasonable assurance of repayment for the transactions it
authorizes, and the Bank closely monitors credit and other
risks in its portfolio. The Bank prices transactions based on
its risk assessment of the buyers.
(12) Since 1934, the net loss rate for all
long-, medium-, and short-term loans made by the Export-Import
Bank of the United States is 1.5 percent.
(13) The Export-Import Bank of the United States has been a
self-sustaining institution since fiscal year 2008, and
surpluses of the Bank are remitted to the United States
Treasury. From fiscal years 2008 through 2010, the Bank
generated a surplus of $551,000,000.
(14) In fiscal year 2010, the Export-Import Bank of the
United States provided a record $5,000,000,000 directly
supporting United States small business exporters through 3,091
transactions, representing 20 percent of the total value of the
Bank's authorizations and nearly 88 percent of the total number
of the Bank's authorizations.
(b) Statement of Purpose.--The purpose of this Act is to
reauthorize the activities and operations of the Export-Import Bank of
the United States to ensure that the Bank provides financing, when
commercial banks are unable or unwilling to do so, competitive with the
financing provided by foreign export credit agencies, in order to
enable United States companies to contribute to a stronger national
economy by maintaining or increasing the employment of workers in the
United States through the export of goods and services.
SEC. 3. EXTENSION OF AUTHORITY.
Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is
amended by striking ``2011'' and inserting ``2015''.
SEC. 4. LIMITATIONS ON OUTSTANDING LOANS, GUARANTEES, AND INSURANCE.
Section 6(a)(2) of the Export-Import Bank Act of 1945 (12 U.S.C.
635e(a)(2)) is amended--
(1) in subparagraph (D), by striking ``and'';
(2) in subparagraph (E), by striking the comma at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(F) during fiscal year 2012, $120,000,000,000;
``(G) during fiscal year 2013, $140,000,000,000; and
``(H) during fiscal year 2014 and each fiscal year
thereafter, $160,000,000,000.''.
SEC. 5. CONTENT GUIDELINES FOR THE PROVISION OF BANK FINANCING.
Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635) is
amended by adding at the end the following:
``(i) Content Guidelines for the Provision of Financing.--
``(1) In general.--The Bank shall, after notice and comment
and Board approval, establish clear and comprehensive
guidelines with respect to the content of the goods and
services involved in a transaction for which the Bank will
provide financing, which shall be aimed at ensuring that the
Bank enables companies with operations in the United States to
maintain and create jobs in the United States and contribute to
a stronger national economy through the export of their goods
and services.
``(2) Required considerations.--In establishing the
guidelines, the Bank shall take into account such
considerations as the Bank deems relevant to meet the purposes
described in paragraph (1), including the following:
``(A) The needs of different industry sectors to
obtain financing from the Bank for exporting their
products or services in order to create and maintain
jobs in the United States.
``(B) The ability of companies with operations in
the United States to compete effectively for export
opportunities that will create and maintain jobs in the
United States, particularly with respect to the Bank's
content requirements and co-financing arrangements.
``(C) The totality of support, including financing
and subsidies, extended by export credit agencies to
support the exports of goods and services, as well as
key differences in, types of trade-offs among, and
national trade promotion strategies of OECD member
countries and of non-OECD member countries.
``(D) Recommendations from the advisory committee
established under section 3(d), including any
dissenting views.
``(E) Any findings or recommendations of the
Government Accountability Office pertaining to the
ability of the Bank to provide financing that is
competitive with the financing provided by foreign
export credit agencies, to enable companies with
operations in the United States to contribute to a
stronger United States economy by maintaining or
increasing the employment of workers in the United
States through the export of goods and services.
``(F) The effects of the guidelines on the
manufacturing workforce and service workforce of the
United States.
``(G) The effect of changes to current Bank content
requirements on the incentive for companies to create
and maintain operations in the United States in order
to increase the employment of workers in the United
States.
``(3) Separate guidelines.--
``(A) The Bank may establish separate guidelines
under this subsection for services and for goods.
``(B) The Bank may establish separate guidelines
under this subsection for small business concerns (as
defined in section 3(a) of the Small Business Act).
``(C) The Bank may continue separate guidelines
under this subsection with respect to different terms
and products.
``(4) Certification that domestic content has not been
reduced because of the guidelines.--In determining whether to
provide financing for a proposed transaction, the exporter
shall certify that the domestic content of a good has not been
reduced solely as a result of the guidelines.
``(5) Procedural provisions.--Within 60 days after the date
of the enactment of this Act, the Bank shall publish a notice
with respect to the issuance or modification of guidelines
under this subsection. Within 60 days after the end of the
public comment period otherwise required by law with respect to
the issuance or modification of the guidelines, the Bank shall
submit to the Congress, for its review, the guidelines in
proposed final form. At the end of the 30-day period that
begins with the date the proposed final guidelines are so
submitted, the proposed final guidelines shall be considered a
final agency action for all purposes and shall take effect and
be implemented immediately.
``(6) Term.--Every 2 years, the Bank shall review and, as
appropriate, modify the guidelines, subject to paragraph (5).
``(7) Report to congress.--Within 1 year after the
implementation of new or modified guidelines under this
subsection, the Inspector General of the Bank shall submit to
the Congress a report evaluating the guidelines, which shall
include--
``(A) a discussion of the considerations required
to be taken into account in establishing the
guidelines, a comparison of how the guidelines reflect
each consideration, and a description of the extent to
which the guidelines enabled companies with operations
in the United States who submitted an application for
financing from the Bank to maintain and create jobs in
the United States and contribute to a stronger national
economy through the export of their goods and services;
``(B) a description of the effect of the guidelines
on the number of domestic jobs to be supported, the
kinds of domestic jobs to be supported, including their
duration and geographic location, and the existence and
nature of any transfers of technology or production;
and
``(C) recommendations for how the guidelines could
be modified to better facilitate exports of goods and
services from the United States in order to maintain
and create jobs in the United States and contribute to
a stronger national economy.''.
SEC. 6. BIENNIAL AUDITS OF BANK TRANSACTIONS.
Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635), as
amended by section 5 of this Act, is amended by adding at the end the
following:
``(j) Audits of Bank Transactions.--Every 2 years, the Comptroller
General of the United States, in consultation with Inspector General of
the Bank, shall audit a representative sample of Bank transactions to
ensure that Bank underwriting, policies, due diligence, and content
guidelines are met by applicants who receive Bank support.''.
SEC. 7. USE OF PORTION OF BANK SURPLUS TO UPDATE INFORMATION TECHNOLOGY
SYSTEMS.
Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a) is
amended by adding at the end the following:
``(j) Authority To Use Portion of Bank Surplus To Update
Information Technology Systems.--
``(1) In general.--Subject to paragraphs (3) and (4), the
Bank may use an amount equal to 1.25 percent of the surplus of
the Bank during each fiscal year to--
``(A) seek to remedy any of the operational
weakness and risk management vulnerabilities of the
Bank which are the result of the information technology
system of the Bank;
``(B) remedy data fragmentation, enhance
information flow throughout the Bank, and manage data
across the Bank; and
``(C) enhance the operational capacity and risk
management capabilities of the Bank to better enable
the Bank to increase exports and grow jobs while
protecting the taxpayer.
``(2) Surplus.--In paragraph (1), the term `surplus' means
the amount (if any) by which--
``(A) the sum of the interest and fees collected by
the Bank; exceeds
``(B) the sum of--
``(i) the funds set aside to cover expected
losses on transactions financed by the Bank;
and
``(ii) the costs incurred to cover the
administrative expenses of the Bank.
``(3) Limitation.--The aggregate of the amounts used in
accordance with paragraph (1) for all fiscal years shall not
exceed $20,000,000.
``(4) Subject to appropriations.--The authority provided by
paragraph (1) may be exercised only to such extent and in such
amounts as are provided in advance in appropriations Acts.''.
SEC. 8. MONITORING OF DEFAULT RATES ON BANK FINANCING; REPORTS ON
DEFAULT RATES.
Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g) is
amended by adding at the end the following:
``(g) Monitoring of Default Rates on Bank Financing; Reports on
Default Rates.--
``(1) Monitoring of default rates.--Not less frequently
than quarterly, the Bank shall calculate the rate at which the
entities to which the Bank has provided short-, medium-, or
long-term financing are in default on a payment obligation
under the financing, by dividing the total amount of the
required payments that are overdue by the total amount of the
financing involved.
``(2) Reports.--Within 45 days after a rate calculated
under paragraph (1) equals or exceeds 2 percent, the Bank shall
submit to the Congress a written report that explains the
circumstances that have caused the default rate to equal or
exceed 2 percent, and includes a plan to reduce the default
rate to less than 2 percent.''.
SEC. 9. SENSE OF THE CONGRESS REGARDING BANK ACCOUNTABILITY.
It is the sense of the Congress that--
(1) the Board of Directors of the Export-Import Bank of the
United States (in this section referred to as the ``Bank'')
should establish a formal, transparent, and independent
accountability mechanism that would review, investigate, and
report on allegations by affected parties of failure of the
Bank to follow its own policies and procedures, including
situations where the Bank is alleged to have failed in its
follow-up on the borrower's obligations in financing agreements
with respect to such policies and procedures;
(2) such an accountability mechanism should be able to
provide advice to management on policies, procedures,
guidelines, resources, and systems established to ensure
adequate review and monitoring of projects;
(3) in carrying out its mandate, the confidentiality of
sensitive business information should be respected, and, in
consultation with affected parties, project sponsors, and Bank
management, a flexible process should be followed aimed
primarily at correcting project failures and achieving better
results on the ground; and
(4) the accountability mechanism should be independent of
the line operations of management, and report its findings and
recommendations directly to the Board of Directors of the Bank.
SEC. 10. SUB-SAHARAN AFRICA ADVISORY COMMITTEE.
Section 2(b)(9)(B)(iii) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(b)(9)(B)(iii)) is amended by striking ``2011'' and inserting
``2015''.
SEC. 11. EXTENSION OF AUTHORITY TO PROVIDE FINANCING FOR THE EXPORT OF
NONLETHAL DEFENSE ARTICLES OR SERVICES THE PRIMARY END
USE OF WHICH WILL BE FOR CIVILIAN PURPOSES.
Section 1(c) of Public Law 103-428 (12 U.S.C. 635 note; 108 Stat.
4376) is amended by striking ``2011'' and inserting ``2015''.
SEC. 12. ELIMINATION OF OBSOLETE PROVISIONS.
(a) Foreign Credit Insurance Association.--
(1) In general.--Section 2(b)(1) of the Export-Import Bank
Act of 1945 (12 U.S.C. 635(b)(1)) is amended by striking
subparagraph (F) and redesignating subparagraphs (G) through
(L) as subparagraphs (F) through (K), respectively.
(2) Conforming amendments.--
(A) Section 2(h)(2) of such Act (12 U.S.C.
635(h)(2)) is amended by striking ``(J)'' and inserting
``(I)''.
(B) Section 3 of such Act (12 U.S.C. 635a) is
amended in each of subsections (f)(1)(A) and (g)(7) by
striking ``(I)'' and inserting ``(H)''.
(C) Section 8 of such Act (12 U.S.C. 635g) is
amended in each of subsections (c) and (f)(8)(A) by
striking ``(J)'' and inserting ``(I)''.
(D) Section 8A(a)(5) of such Act (12 U.S.C. 635g-
1(a)(5)) is amended by striking ``2(b)(1)(K)'' and
inserting ``2(b)(1)(J)''.
(b) Definition of Marxist-Leninist Country.--Section 2(b)(2)(B)(ii)
of such Act (12 U.S.C. 635(b)(2)(B)(ii)) is amended by striking
subclause (VII) and redesignating subclauses (VIII) and (IX) as
subclauses (VII) and (VIII), respectively.
SEC. 13. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect on
October 1, 2011.
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